OUTFLOW. Write your answer on the second column. Determine if the cash activity is OPERATING< INVESTING or FINANCING. Write your answer on the third column. If the transaction is non-cash, write NONCASH on both columns. Transaction Movement of cash Cash activity 1. collection from customers 2. payment of interest to lenders made by financial institutions 3. issuance of shares of stocks 4. proceed from loan from Metrobank 5. depreciation of equipment 6. sale of merchandise 7. sale of obsolete machineries 8. payment of salaries of employees. 9. payment of taxes 10. payment of dividends

OUTFLOW. Write your answer on the second column. Determine if the cash activity is OPERATING< INVESTING or FINANCING. Write your answer on the third column. If the transaction is non-cash, write NONCASH on both columns. Transaction Movement of cash Cash activity 1. collection from customers 2. payment of interest to lenders made by financial institutions 3. issuance of shares of stocks 4. proceed from loan from Metrobank 5. depreciation of equipment 6. sale of merchandise 7. sale of obsolete machineries 8. payment of salaries of employees. 9. payment of taxes 10. payment of dividends

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[Question text] Cash management involves _________. Select one:A. maximizing the income earned on cash reservesB. determining the optimal level of liquidity that should be maintainedC. optimizing the collections and disbursements of cashD. reconciling a company's book balance with its bank balance
Place an X' in the appropriate columns for each of the following situations to indicate how amounts are classified and how or whether cash is affected: Effect on Cash Operating Investing Financing Activity Inflow (+) Situation Outflow No Activity Activity () Effect a. Paying off accounts payable with cash. b. Retirement of common stock with cash. e. Issuance of bonds for |cash. |d. Acquired land by issuing | common stock. e. Paid cash for inventory. E Collection of accounts receivable with customer cash.
To make the assessment about future net cash in-flows. The users’ needs to select which type of information ? a. Changes in the resources and claims b. Bank accounts of the company c. Age of the management d. Property of the company
For each of the items indicate type of activity as per cash flows:
D&D Company reports select items from its statement of cash flows. Identify those items related to investing activities and co- net cash flows from investing activities. Activity Cash paid to purchase property Cash from selling merchandise Cash paid for income taxes Cash received from a long-term note Cash paid to repurchase stock Cash received from sale of investments Cash received from issuing equity shares Cash paid to purchase merchandise Cash paid to purchase investment securities Cash paid in salaries and wages Note: Cash outflows should be indicated by a minus sign. Activity Net cash flows from investing activities $ Amount 0 Amount $ 400,000 688,000 135,000 850,000 100,000 40,000 500,000 710,000 50,000 410,000
1.Based on the sales forecast, the finance manager estimates the receipt of cash based on cash and ________. Group of answer choices accounts receivables inventory sales credit sales net income
State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: Note: Only consider the cash component of each transaction. Use the minus sign to indicate amounts that are cash out flows, cash payments, decreases in cash, or any negative adjustments. If your answer is not reported in an amount box does not require an entry, leave it blank or enter "0". a. Received $120,000 from the sale of land costing $70,000. Investing activities $fill in the blank 2 Operating activities $fill in the blank 4 b. Purchased investments for $75,000. Investing activities $fill in the blank 6 c. Declared $35,000 cash dividends on stock. $5,000 dividends were payable at the beginning of the year, and $6,000 were payable at the end of the year. Financing activities $fill in the blank 8 d. Acquired equipment for…
A source of cash from operating activities is: Group of answer choices A)Proceeds from a loan. B)Collection of an account receivable. C)Cash received from the sale of used equipment. D)Cash received from the sale of treasury stock. e)None of the above.
Listed below are several transactions. For each transaction, indicate whether the cash effect of each transaction is reported in a statement of cash flows as an operating, investing, financing, or noncash activity. Also, indicate whether the transaction is a cash inflow or cash outflow, or has no effect on cash. The first answer is provided as an example Transaction Type of Cash Inflow Activity or Outflow 1. Issuance of common stock. Financing Cash inflow 2. Sale of land for cash. Investing Cash inflow 3. Purchase of treasury stock. Financing Cash outflow 4. Collection of an account receivable. Operating Cash inflow 5. Issuance of a note payable. 6. Purchase of inventory. Operating Cash outflow 7. Repayment of a note payable. Financing 8. Payment of employee salaries. Operating Cash outflow 9. Sale of equipment for a note receivable. Noncash No effect 10. Issuance of bonds. Financing Cash inflow 11. Investment in bonds. 12. Payment of interest on bonds payable. 13. Payment of a cash…
For each of the following transactions, indicate whether operating (O), investing (I), or financingactivities (F) are affected and whether the effect is a cash inflow ( + ) or outflow ( - ), or (NE) if thetransaction has no effect on cash.1. Received deposits from customers for products to be delivered the following period.2. Principal repayments on loan.3. Paid cash to purchase new equipment.4. Received proceeds from loan.5. Collected payments on account from customers.6. Recorded and paid salaries and wages to employees.7. Paid cash for building construction.8. Recorded and paid interest to debt holders.
Statement of Cash , select the false statement a.The cash received from the sale of goods is a cash inflow b.Dividends paid to shareholders are recorded as a cash outflow c.Proceeds from the sale of bonds are recorded as a cash outflow d.A sale of a fixed asset is recorded as a cash inflow
In the statement of cash flows, financing activities are those activities a. that include cash collections from customers and payments to suppliers. b. with owners or long-term creditors or that involve borrowing cash on a short-term basis. c. that involve the purchase and the sale of goods to customers including expenditures to operate the business d. that involve making and collecting loans or purchasing and selling plant assets.